CBOT wheat may retest support at $6.42
- Under the repeated attacks by bears, this support may be broken on Thursday.
SINGAPORE: CBOT May wheat may retest a support at $6.42 per bushel, a break below which could cause a fall to $6.35-3/4.
The contract is riding on a wave c from $6.68-3/4. This wave does not seem to end around its 61.8% projection level of $6.42. Instead, it may extend to $6.25-3/4.
Despite its complex structure, this wave c is unfolding within a falling channel. As long as wheat remains in the channel, the target of $6.25-3/4 will be intact.
The wave c is a part of a bigger wave C, which started at $6.88-3/4. The wave C is heading towards $6.21-1/2, its 100% projection level.
On the daily chart, the contract has briefly pierced below a support at $6.45-1/2 three times.
Under the repeated attacks by bears, this support may be broken on Thursday.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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